Critical Analysis: Macerich (NYSE:MAC) versus Crombie Real Estate Investment Trust (OTCMKTS:CROMF)

Crombie Real Estate Investment Trust (OTCMKTS:CROMF) and Macerich (NYSE:MAC) are both real estate companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Institutional and Insider Ownership

31.8% of Crombie Real Estate Investment Trust shares are owned by institutional investors. Comparatively, 87.4% of Macerich shares are owned by institutional investors. 0.2% of Macerich shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Crombie Real Estate Investment Trust and Macerich’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Crombie Real Estate Investment Trust	N/A	N/A	N/A
Macerich	-16.85%	-6.26%	-1.97%

Earnings & Valuation

This table compares Crombie Real Estate Investment Trust and Macerich”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Crombie Real Estate Investment Trust	N/A	N/A	N/A	($0.44)	-25.73
Macerich	$1.01 billion	6.64	-$197.15 million	($0.65)	-36.27

Crombie Real Estate Investment Trust has higher earnings, but lower revenue than Macerich. Macerich is trading at a lower price-to-earnings ratio than Crombie Real Estate Investment Trust, indicating that it is currently the more affordable of the two stocks.

Dividends

Crombie Real Estate Investment Trust pays an annual dividend of $0.89 per share and has a dividend yield of 7.8%. Macerich pays an annual dividend of $0.68 per share and has a dividend yield of 2.9%. Crombie Real Estate Investment Trust pays out -199.9% of its earnings in the form of a dividend. Macerich pays out -104.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Crombie Real Estate Investment Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Crombie Real Estate Investment Trust and Macerich, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Crombie Real Estate Investment Trust	0	0	0	0	0.00
Macerich	1	5	9	1	2.62

Macerich has a consensus target price of $26.00, indicating a potential upside of 10.29%. Given Macerich’s stronger consensus rating and higher possible upside, analysts clearly believe Macerich is more favorable than Crombie Real Estate Investment Trust.

About Crombie Real Estate Investment Trust

Crombie invests in real estate that enriches local communities and enables long-term sustainable growth. As one of the country's leading owners, operators, and developers of quality assets, Crombie's portfolio primarily includes grocery-anchored retail, retail-related industrial, and mixed-use residential properties. As at December 31, 2023, our portfolio contains 304 properties comprising approximately 19.2 million square feet, inclusive of joint ventures at Crombie's share, and a significant pipeline of future development projects.

About Macerich

Macerich is a fully integrated, self-managed and self-administered real estate investment trust (REIT). As a leading owner, operator and developer of high-quality retail real estate in densely populated and attractive U.S. markets, Macerich’s portfolio is concentrated in California, the Pacific Northwest, Phoenix/Scottsdale, and the Metro New York to Washington, D.C. corridor. Developing and managing properties that serve as community cornerstones, Macerich currently owns 47 million square feet of real estate consisting primarily of interests in 44 regional town centers. Macerich is firmly dedicated to advancing environmental goals, social good and sound corporate governance. A recognized leader in sustainability, Macerich has achieved a #1 Global Real Estate Sustainability Benchmark (GRESB) ranking for the North American retail sector for nine consecutive years (2015-2023).